Wizard World, Inc. Announces Third Quarter 2013 Results

NEW YORK & LOS ANGELES, November 22, 2013 -- Wizard World, Inc. (OTCBB: WIZD) discusses financial results for the quarter ended September 30, 2013. CEO John Macaluso stated, “Wizard World has continued to perform extremely well in the third quarter and has shown that we are well positioned to be one of the industry leaders in the live event space. This quarter we announced the expansion of our 2014 calendar to fifteen events, in one of many steps towards achieving that goal.”

Third Quarter Summary

Convention revenue was $4,113,181 for the three months ended September 30, 2013, as compared to $2,792,907 for the comparable period ended September 30, 2012, an increase of $1,320,274 year over year or over 47%. The Company operated two events during the period ended September 30, 2013, as compared to two events during the comparable period ended September 30, 2012.

Average revenue generated per event in the third quarter of 2013 was $2,056,591 as compared to $1,396,454 during 2012. This is the third full quarter in which revenue per event rose by more than 47% on year over year basis.

Operating expenses for the three months ended September 30, 2013, was $928,776, as compared to $734,087 for the three months ended September 30, 2012. The increase is primarily attributable to an increase in salaries and employee headcount as well as share based payments that were made to the Chief Executive Officer upon committing to work for the Company.

Other income (expense) for the three months ended September 30, 2013, was $(2,225,570), as compared to $1,057,744 for the three months ended September 30, 2012. The decrease is primarily attributable to the loss on the fair value of the Company’s derivative liabilities.

Income from operations for the three months ended September 30, 2013, was $1,096,824 as compared to $646,543 for the three months ended September 30, 2012.

Net income (loss) attributable to common shareholder for three months ended September 30, 2013, was $(1,215,115) or loss per share of $ (0.03), as compared to $1,233,141 or income per share of $0.04, for the three months ended September 30, 2012.

Effective August 21, 2013, our Series A Preferred Shareholders converted all outstanding shares of Series A Cumulative Convertible Preferred Stock into approximately 9.5 million shares of the Company’s common stock.  We issued approximately 1.6 million shares of common stock as payment for accrued and unpaid dividends related to such conversion. In addition, all outstanding Series A Common Stock Purchase Warrants were exchanged for approximately 4.0 million shares of common stock.

Net cash provided by (used in) operating activities for the nine months ended September 30, 2013 and 2012, was $1,306,712 and $310,949, respectively. The net income (loss) attributable to common shareholder for the nine months ended September 30, 2013 and 2012, was $(0.09) and $(0.08), respectively. The Company's cash provided by (used in) operations increased primarily due to operating profitable events.

The Company believes that our existing available cash, along with our cash flows from operations will enable the Company to meet the working capital requirements for at least 12 months. The estimated working capital requirement for the next 12 months is $2,520,000 with an estimated burn rate of $210,000 per month. The Company continues to explore potential expansion opportunities in the industry in order to boost sales while leveraging distribution systems to consolidate lower costs.

In addition, we encourage our shareholders to view our full Quarterly Report as filed on Form 10-Q which can be found on www.sec.gov.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve certain risks and uncertainties. The actual results or outcomes of Wizard World, Inc. may differ materially from those anticipated. Although Wizard World, Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any such assumptions could prove to be inaccurate. Therefore, Wizard World, Inc. can provide no assurance that any of the forward-looking statements contained in this letter will prove to be accurate.

In light of the significant uncertainties and risks inherent in the forward-looking statements included in this letter, such information should not be regarded as a representation by Wizard World, Inc. that its objectives or plans will be achieved. Included in these uncertainties and risks are, among other things, fluctuations in operating results, general economic conditions, uncertainty regarding the results of certain legal proceedings and competition. Forward-looking statements consist of statements other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as "may," "intend," "expect," "will," "anticipate," "estimate" or "continue" or the negatives thereof or other variations thereon or comparable terminology. Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Wizard World, Inc.'s most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Wizard World, Inc. does not undertake an obligation to update publicly any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.